Nike

21/03/2024, 21:59 NIKE, Inc. - Investor Relations - NIKE, Inc.
Reports Fiscal 2024 Third Quarter Results
INVESTOR NEWS DETAILS
NIKE, INC. REPORTS FISCAL 2024

THIRD QUARTER RESULTS
03/21/2024
BEAVERTON, Ore.--(BUSINESS WIRE)--

NIKE, Inc. (NYSE:NKE) today reported fiscal
2024 financial results for its third quarter ended
February 29, 2024.
Third quarter revenues were

slightly up on both a reported and
currency-neutral basis* at $12.4
billion
NIKE Direct revenues were $5.4

billion, slightly up on a reported and
currency-neutral basis
NIKE Brand Digital sales

decreased 3 percent on a reported
basis and 4 percent on a currency-
neutral basis
Wholesale revenues were $6.6

billion, up 3 percent on a reported
and currency-neutral basis
https://investors.nike.com/investors/news-events-and-reports/investor-news/investor-news-details/2024/NIKE-Inc.-Reports-Fiscal-2024-Third-Qu… 1/16
21/03/2024, 21:59 NIKE, Inc. - Investor Relations - NIKE, Inc. Reports Fiscal 2024 Third Quarter Results
Gross margin increased 150 basis

points to 44.8 percent, including a
detriment of 50 basis points due to
restructuring charges
Selling and administrative expense

increased 7 percent to $4.2 billion,
including $340 million of
restructuring charges
Diluted earnings per share was

$0.77, including $0.21 of
restructuring charges. Excluding
these charges, Diluted earnings per
share would have been $0.98*
“We are making the necessary adjustments to

drive NIKE’s next chapter of growth,” said John
Donahoe, President & CEO, NIKE, Inc. “We’re
encouraged by the progress we’ve seen, as we
build a multiyear cycle of new innovation,
sharpen our brand storytelling and work with
our wholesale partners to elevate and grow the
marketplace.”**
Matthew Friend, Executive Vice President &

Chief Financial Officer, NIKE, Inc. said, “Our
teams are focused on what matters most to
return to strong growth. We are taking action to
build a faster, more efficient NIKE and
maximize the impact of our new innovation
cycle.”**
Third Quarter Income Statement Review
Revenues for NIKE, Inc. were

slightly up on both a reported and
currency-neutral basis at $12.4

billion.
Revenues for the NIKE

Brand were $11.9 billion, up
2 percent on a reported and
currency-neutral basis, as
currency-neutral growth in
North America, Greater
China and APLA was offset
by declines in EMEA.
Revenues for Converse were

$495 million, down 19
percent on a reported basis
and down 20 percent on a
currency-neutral basis,
primarily due to declines in
North America and Europe.
Gross margin increased 150 basis

points to 44.8 percent, primarily
driven by strategic pricing actions
and lower ocean freight and
logistics costs, partially offset by
higher product input costs and
restructuring charges.
Selling and administrative

expense increased 7 percent to
$4.2 billion.
Demand creation expense

was $1.0 billion, up 10
percent, reflecting an
increase in marketing
expense.
Operating overhead expense

increased 6 percent to $3.2
billion, primarily due to
restructuring charges,
partially offset by lower
wage-related expenses.
The effective tax rate was 16.5

percent compared to 16.0 percent
for the same period last year.
Net income was $1.2 billion, down

5 percent, and Diluted earnings
per share was $0.77, decreasing 3
percent.
February 29, 2024 Balance Sheet Review
Inventories for NIKE, Inc. were

$7.7 billion, down 13 percent
compared to the prior year,
reflecting a decrease in units.
Cash and equivalents and short-

term investments were $10.6
billion, down approximately $0.2
billion from last year, as cash
generated by operations was more
than offset by share repurchases,
cash dividends, capital
expenditures and bond repayment.
Shareholder Returns
NIKE continues to have a strong track record

of investing to fuel growth and consistently
increasing returns to shareholders, including
22 consecutive years of increasing dividend
payouts. In the third quarter, NIKE returned
approximately $1.4 billion to shareholders,
including:
Dividends of $562 million, up 6

percent from the prior year.
Share repurchases of $866

million, reflecting 7.9 million shares
retired as part of the Company’s
four-year, $18 billion program
approved by the Board of Directors
in June 2022. As of February 29,
2024, a total of 73.8 million shares
have been repurchased under the
program for a total of approximately
$8.0 billion.
Conference Call
NIKE, Inc. management will host a conference

call beginning at approximately 2:00 p.m. PT
on March 21, 2024, to review fiscal third
quarter results. The conference call will be
broadcast live via the Internet and can be
accessed at https://investors.nike.com. For
those unable to listen to the live broadcast, an
archived version will be available at the same
location through approximately 9:00 p.m. PT,
April 11, 2024.
About NIKE, Inc.
NIKE, Inc., based near Beaverton, Oregon, is

the world's leading designer, marketer and
distributor of authentic athletic footwear,
apparel, equipment and accessories for a wide
variety of sports and fitness activities.
Converse, a wholly-owned NIKE, Inc.
subsidiary brand, designs, markets and
distributes athletic lifestyle footwear, apparel
and accessories. For more information, NIKE,
Inc.’s earnings releases and other financial
information are available on the Internet at
https://investors.nike.com. Individuals can also
visit https://about.nike.com/en/newsroom and
follow @NIKE.
Non-GAAP financial measures. See

additional information in the accompanying
Divisional Revenues table and Diluted
* earnings per share table.
The marked paragraphs contain forward-

looking statements that involve risks and
uncertainties that could cause actual results
to differ materially. These risks and
uncertainties are detailed from time to time
in reports filed by NIKE with the U.S.
Securities and Exchange Commission
** (SEC), including Forms 8-K, 10-Q and 10-K.
NIKE, Inc.
CONSOLIDATED STATEMENTS
(Unaudited)
THREE MONTHS
ENDED %
(In millions,
except per
share data) 2/29/2024 2/28/2023 Change 2/2
Revenues $ 12,429 $ 12,390 0% $ 3
Cost of sales 6,867 7,019 -2% 2
Gross profit 5,562 5,371 4% 1
Gross
margin 44.8% 43.3%
Demand
creation
expense 1,011 923 10%
Operating
overhead
expense 3,215 3,036 6%
Total selling
and
administrative
expense 4,226 3,959 7% 1
% of
revenues 34.0% 32.0%
Interest
expense
(income), net (52) (7) —
Other
(income)
expense, net (16) (58) —
Income
before
income taxes 1,404 1,477 -5%
Income tax
expense 232 237 -2%
Effective
tax rate 16.5% 16.0%
NET
INCOME $ 1,172 $ 1,240 -5% $
Earnings per
common
share:
Basic $ 0.77 $ 0.80 -4% $
Diluted $ 0.77 $ 0.79 -3% $
Weighted
average
common
shares
outstanding:
Basic 1,513.2 1,543.8 1,
Diluted 1,526.5 1,564.8 1,
Dividends
declared per
common
share $ 0.370 $ 0.340 $
NIKE, Inc.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
February February
29, 28,
%
(Dollars in millions) 2024 2023 Change
ASSETS
Current assets:
Cash and
equivalents $ 8,960 $ 6,955 29%
Short-term
investments 1,613 3,847 -58%
Accounts
receivable, net 4,526 4,513 0%
Inventories 7,726 8,905 -13%
Prepaid
expenses and
other current
assets 1,928 1,815 6%
Total current
assets 24,753 26,035 -5%
Property, plant
and equipment,
net 5,082 4,939 3%
Operating
lease right-of-
use assets, net 2,856 2,834 1%
Identifiable
intangible
assets, net 259 277 -6%
Goodwill 240 281 -15%
Deferred
income taxes
and other
assets 4,166 3,928 6%
TOTAL ASSETS $ 37,356 $ 38,294 -2%
LIABILITIES AND
SHAREHOLDERS’
EQUITY
Current liabilities:
Current portion
of long-term
debt $ —$ 500 -100%
Notes payable 6 14 -57%
Accounts
payable 2,340 2,675 -13%
Current portion
of operating
lease liabilities 474 435 9%
Accrued
liabilities 5,818 5,594 4%
Income taxes
payable 391 330 18%
Total current
liabilities 9,029 9,548 -5%
Long-term debt 8,930 8,925 0%
Operating
lease liabilities 2,691 2,692 0%
Deferred
income taxes
and other
liabilities 2,480 2,598 -5%
Redeemable
preferred stock — — —
Shareholders’
equity 14,226 14,531 -2%
TOTAL
LIABILITIES AND
SHAREHOLDERS’
EQUITY $ 37,356 $ 38,294 -2%
NIKE,
DIVISIONAL
(Unaud
%
Cha
https://investors.nike.com/investors/news-events-and-reports/investor-news/investor-news-details/2024/NIKE-Inc.-Reports-Fiscal-2024-Third-Q… 10/16
THREE MONTHS Exclu

ENDED % Curr
Chan
(Dollars in
millions) 2/29/2024 2/28/2023 Change
North
America
Footwear $ 3,460 $ 3,322 4%
Apparel 1,408 1,419 -1%
Equipment 202 172 17%
Total 5,070 4,913 3%
Europe,
Middle East
& Africa
Footwear 1,960 2,011 -3%
Apparel 994 1,094 -9% -
Equipment 184 141 30% 2
Total 3,138 3,246 -3%
Greater
China
Footwear 1,547 1,496 3%
Apparel 498 461 8%
Equipment 39 37 5%
Total 2,084 1,994 5%
Asia Pacific
& Latin
America
Footwear 1,195 1,141 5%
Apparel 390 407 -4%
Equipment 62 53 17%
Total 1,647 1,601 3%
Global 9 12 -25% -2
Brand
Divisions2
TOTAL
NIKE
BRAND 11,948 11,766 2%
Converse 495 612 -19% -2
Corporate3 (14) 12 —
TOTAL
NIKE, INC.
REVENUES $ 12,429 $ 12,390 0%
TOTAL
NIKE
BRAND
Footwear $ 8,162 $ 7,970 2%
Apparel 3,290 3,381 -3%
Equipment 487 403 21% 2
Global
Brand
Divisions2 9 12 -25% -2
TOTAL
NIKE
BRAND
REVENUES $ 11,948 $ 11,766 2%
1The percent change has been calculated usin

comparative prior year period and is provided to
business trends by excluding the impact of trans
rate fluctuations, which is considered a non-GAA
non-GAAP financial measure when evaluating t
making financial and operating decisions. Additi
financial measure provides investors with additi
considered when assessing the Company’s und
References to this measure should not be cons
financial measures calculated and presented in
comparable to similarly titled non-GAAP measu
2 GlobalBrand Divisions revenues include NIKE

revenues that are not part of a geographic oper
3 Corporate revenues primarily consist of foreig

revenues generated by entities within the NIKE
Converse, but managed through the Company’s
program
NIKE, Inc.
EARNINGS BEFORE INTEREST AN
(Unaudited)
THREE MONTHS NIN

ENDED %
(Dollars in
millions) 2/29/2024 2/28/2023 Change 2/29/2
North
America $ 1,400 $ 1,190 18% $ 4,36
Europe,
Middle East
& Africa 734 785 -6% 2,59
Greater
China 722 702 3% 1,76
Asia Pacific
& Latin
America 471 485 -3% 1,40
Global
Brand
Divisions2 (1,199) (1,160) -3% (3,57
TOTAL
NIKE
BRAND1 2,128 2,002 6% 6,54
Converse 98 164 -40% 38
Corporate3 (874) (696) -26% (2,06
TOTAL
NIKE, INC.
EARNINGS
BEFORE
INTEREST
AND
TAXES1 1,352 1,470 -8% 4,86
EBIT
margin1 10.9% 11.9% 12
Interest
expense
(income),
net (52) (7) — (10
TOTAL
NIKE, INC.
INCOME
BEFORE
INCOME
TAXES $ 1,404 $ 1,477 -5% $ 4,97
1 The Company evaluates the performance of in

segments based on earnings before interest an
referred to as "EBIT"), which represents Net inc
expense (income), net and Income tax expense
EBIT, Total NIKE, Inc. EBIT and EBIT margin ar
GAAP financial measures. Management uses th
financial measures when evaluating the Compa
including when making financial and operating d
management believes these non-GAAP financia
investors with additional financial information th
considered when assessing the Company’s und
performance and trends. EBIT margin is calcula
EBIT divided by total NIKE, Inc. Revenues. Refe
EBIT margin should not be considered in isolatio
for other financial measures calculated and pres
with U.S. GAAP and may not be comparable to
GAAP measures used by other companies.
2 GlobalBrand Divisions primarily represent dem

operating overhead expense, including product
expenses that are centrally managed for the NIK
costs associated with NIKE Direct global digital

enterprise technology. Global Brand Divisions re
Brand licensing and other miscellaneous revenu
a geographic operating segment.
3 Corporate consists primarily of unallocated ge

administrative expenses, including expenses as
managed departments; depreciation and amorti
Company’s corporate headquarters; unallocated
and compensation programs, including stock-ba
and certain foreign currency gains and losses, i
gains and losses. For the three and nine month
2024, Corporate includes the restructuring char
result of the Company taking steps to streamline
These charges primarily reflect employee sever
NIKE, Inc.
DILUTED EARNINGS PER SHARE
(Unaudited)
THREE NINE
MONTHS MONTHS
ENDED ENDED
2/29/2024 2/29/2024
DILUTED EARNINGS
PER SHARE (GAAP): $ 0.77 $ 2.74
Add: Restructuring
charges 0.26 0.26
Tax effect of the

restructuring charges1 (0.05) (0.05)
DILUTED EARNINGS
PER SHARE
EXCLUDING
RESTRUCTURING
CHARGES (NON-
GAAP)2: $ 0.98 $ 2.95
1 Tax effect was determined by applying the

tax rate applicable to the specific item.
2 Diluted earnings per share excluding the

restructuring charges is a non-GAAP financial
measure. The most comparable GAAP
measure is Diluted earnings per share. The
Company uses Diluted earnings per share
excluding the restructuring charges to facilitate
the evaluation of the Company’s performance.
The Company believes that providing Diluted
earnings per share excluding the impacts of
the restructuring charges is useful to investors
for comparability between periods and allows
investors to evaluate the impacts of the
restructuring charges separately. For the three
and nine months ended February 28, 2023,
there were no material restructuring charges
impacting comparability.
View source version on businesswire.com:

https://www.businesswire.com/news/home/20240321992075/en/
Investor Contact:
Paul Trussell
investor.relations@nike.com
Media Contact:
Virginia Rustique-Petteni
media.relations@nike.com
Source: NIKE, Inc.

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21/03/2024, 21:59 NIKE, Inc. - Investor Relations - NIKE, Inc.

Reports Fiscal 2024 Third Quarter Results

INVESTOR NEWS DETAILS

NIKE, INC. REPORTS FISCAL 2024

BEAVERTON, Ore.--(BUSINESS WIRE)--

Third quarter revenues were

NIKE Direct revenues were $5.4

NIKE Brand Digital sales

Wholesale revenues were $6.6

Gross margin increased 150 basis

Selling and administrative expense

Diluted earnings per share was

“We are making the necessary adjustments to

Matthew Friend, Executive Vice President &

Third Quarter Income Statement Review

Revenues for NIKE, Inc. were

currency-neutral basis at $12.4

Revenues for the NIKE

Revenues for Converse were

Gross margin increased 150 basis

Selling and administrative

Demand creation expense

Operating overhead expense

The effective tax rate was 16.5

Net income was $1.2 billion, down

February 29, 2024 Balance Sheet Review

Inventories for NIKE, Inc. were

Cash and equivalents and short-

NIKE continues to have a strong track record

Dividends of $562 million, up 6

Share repurchases of $866

NIKE, Inc. management will host a conference

About NIKE, Inc.

NIKE, Inc., based near Beaverton, Oregon, is

Non-GAAP financial measures. See

The marked paragraphs contain forward-

Revenues $ 12,429 $ 12,390 0% $ 3

Cost of sales 6,867 7,019 -2% 2

Gross profit 5,562 5,371 4% 1

Basic $ 0.77 $ 0.80 -4% $

Diluted $ 0.77 $ 0.79 -3% $

Basic 1,513.2 1,543.8 1,

Diluted 1,526.5 1,564.8 1,

CONSOLIDATED BALANCE SHEETS

Inventories 7,726 8,905 -13%

Goodwill 240 281 -15%

TOTAL ASSETS $ 37,356 $ 38,294 -2%

Notes payable 6 14 -57%

Long-term debt 8,930 8,925 0%

THREE MONTHS Exclu

Footwear $ 3,460 $ 3,322 4%

Apparel 1,408 1,419 -1%

Equipment 202 172 17%

Total 5,070 4,913 3%

Footwear 1,960 2,011 -3%

Apparel 994 1,094 -9% -

Equipment 184 141 30% 2

Total 3,138 3,246 -3%

Footwear 1,547 1,496 3%

Apparel 498 461 8%

Total 2,084 1,994 5%

Footwear 1,195 1,141 5%

Apparel 390 407 -4%

Total 1,647 1,601 3%